Wall Street poised to break 2016 slump

IN THE NEWS TODAY

After last week's worst start on Wall Street to a new year ever, U.S. stock futures spiked lower in early trading before recovering. Concerns about China were largely to blame, and the Shanghai composite fell another 5.3 percent overnight. (CNBC)

Chinese stocks sunk late in the day, despite the People's Bank of China guiding the yuan higher for the second straight session. The move helped calm some fears that Beijing may want to engineer a sharper devaluation in its currency. (Reuters)

The S&P 500 is coming off its steepest weekly loss since the summer 2011, wiping outmore than $1 trillion in market value. The index closed Friday just above a correction. But the Dow and Nasdaq were in a correction ahead of Monday's trading. (CNBC)

U.S. oil prices were sharply lower, hovering around 12-year lows as China's economic slowdown dented the outlook for demand. Crude lost more than 10 percent last week. Prices have plummeted nearly 70 percent since June 2014. (Reuters)

Yahoo (YHOO) plans to spend another $3 billion to boost its web content, according to the New York Post. Yahoo declined comment, but said CEO Marissa Mayer would unveil future plans for the company soon.

Apple (AAPL) has passed 10 million subscribers for its music streaming service, taking six months to hit a milestone that took privately held rival Spotify six years to reach. (FT)

Thanks to a new software update, Tesla's (TSLA) electric vehicles can now park themselves in your garage, laying the groundwork in a couple of years for the car to drive across the country to pick you up. (CNBC)

Volkswagen plans to propose to U.S. authorities a new catalytic converter system that could bring into compliance about 430,000 cars capable of cheating diesel emissions tests. (Reuters)

The Supreme Court hears arguments today, stemming from in the case of 10 California teachers did not want to be the union but were required to pay dues by state law. (NY Times)

Republicans Donald Trump and Ted Cruz are running neck and neck in Iowa, as are Democrats Hillary Clinton and Bernie Sanders, according to the latest NBC News/Wall Street Journal/Marist polls.

Rock legend David Bowiedied Sunday, following an 18-month battle with cancer. The 69-year-old singer's last album, "Blackstar," was released only last past Friday. (CNBC)

BY THE NUMBERS

There are no major earnings this morning. But what was once the traditional start of earnings season takes place this afternoon when former Dow component Alcoa (AA) reports its quarterly numbers after the closing bell. Meanwhile, Alcoa has won a $1.5 billion supply contract from General Electric's (GE) aviation unit.

There are also no economic reports out today, although there are two Fed speakers on the agenda, with Atlanta Fed President Dennis Lockhart and Dallas Fed President Rob Kaplan making public appearances today. Neither is a voting member of the central bank policymaking committee for 2016.

The next Powerball drawing on Wednesday night will have a jackpot worth an estimated $1.3 billion, after no ticket-holder matched all the winning numbers for Saturday's record $900 million U.S. prize.

STOCKS TO WATCH

General Motors (GM) goes to trial today in a suit over its 2014 ignition switch recalls involving millions of vehicles. Six trials are set for this year involving the faulty ignition switches and their relationship to injuries and deaths.

Delta (DAL) will be allowed to maintain its five daily flights between Love Field in Dallas and Atlanta, according to a court ruling. Delta and rival Southwest (LUV) have been engaged in a dispute involving a gate-sharing agreement that expired last summer.

Arch Coal (ACI) has filed for Chapter 11 bankruptcy protection, as part of a restructuring agreement reached with lenders who hold more than $4.5 billion of the coal mining company's debt.

WATERCOOLER

Walt Disney's (DIS) "Star Wars: The Force Awakens" remained atop the weekend box office for the fourth straight week, with $41.6 million in North American ticket sales. That brings its total to a record $812 million. (Variety)

Hollywood kicked off its awards season last night, handing out Golden Globe awards to "The Revenant" and "The Martian," and the return of the uninhibited Ricky Gervais as host after a three-year hiatus. (NBC News)